Private & Confidential

ALLAN GRAY ROADSHOW

October 2019

Greville WardPartner

Head of International Marketing

Fundsmith LLP

Collective Investment Schemes are generally medium to long-term investments. The value of participatory interests or the

investment may go down as well as up. Past performance is not necessarily a guide to future performance. Collective

Investment Schemes are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and

charges and maximum commissions is available on request from the Investment Manager. The Investment Manager does

not provide any guarantee either with respect to the capital or the return of a portfolio. Fundsmith Equity Fund is authorised

by the FSCA under section 65 of the Collective Investment Schemes Control Act 2002. A CIS may be closed to new investors

in order for it to be managed more efficiently in accordance with its mandate.

Collective Investment Schemes prices are calculated on a net asset basis, which is the total value of all the assets in the

portfolio including any income accruals and less any permissible deductions (brokerage, STT, VAT, auditor’s fees, bank

charges, trustee and custodian fees and the annual Management fee) from the portfolio divided by the number of

participatory interests (shares) in issue. Forward pricing is used. Where foreign securities are included in a portfolio there

may be potential constraints on liquidity and the repatriation of funds, macroeconomic risks, political risks, foreign exchange

risks, tax risks, settlement risks; and potential limitations on the availability of market information. The investor acknowledges

the inherent risk associated with the selected investments and that there are no guarantees either with respect to the capital

or the return of a portfolio. Performance has been calculated using net NAV to NAV numbers, including all ongoing fees, with

income reinvested on the reinvestment date.

The performance for each period shown reflects the return for investors who have been fully invested for that period in

Sterling. Individual investor performance may differ as a result of initial fees, the actual investment date, the date of

reinvestments and dividend withholding tax. The return may increase or decrease if the investor is comparing the returns in a

different currency. Full performance calculations are available from the manager on request. For any additional information

such as fund prices, brochures, application forms and annual and interim report and accounts, please go to

www.fundsmith.co.za or contact Fundsmith LLP where they are available free of charge.

Disclaimer

1

2

Fundsmith

• Independent.

• Owned by key staff.

• Key staff have worked together for many years. Terry Smith

(CIO) and Julian Robins (Director of Research) have worked

together for over 20 years and have been through multiple

market cycles.

• Offices in UK, USA and Mauritius.

Terry Smith: It’s in the numbers

3

Investment strategy

4

1. Only invest in good companies

2. Don’t overpay

3. Do nothing

Automotive Industry Cost of Capital vs ROIC

%

Source: No Light at the end of the Tunnel: Investing in Bad Businesses. Aswath Damodaran, Stern NYU, May 2015

-6

-4

-2

0

2

4

6

8

10

12

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ROIC %

Cost of capital %

5

Airline Industry Cost of Capital vs ROIC

Source: IATA, McKinsey

0

1

2

3

4

5

6

7

8

9

10

199419951996199719981999200020012002200320042005200620072008200920102011201220132014

ROIC % Cost of capital %2015

%

6

Unilever

Source: Unilever Report and Accounts, Fundsmith Research 2015

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

ROIC

Cost of Capital

What a good company looks like

7

Examples of good and bad businesses

"Best" businesses (2013-2017) "Worst" businesses in (2013-2017)

Industry

name

Number

of firms

ROCE WACC ROCE-

WACC

Industry

name

Number

of firms

ROCE WACC ROCE-

WACC

Tobacco 62 46.6% 7.0% 39.5% Oil/Gas (Production

and Exploration)

928 1.9% 9.9% -8.0%

Information Services 193 36.4% 9.0% 27.4% Precious Metals 961 4.2% 10.2% -5.9%

Advertising 258 32.3% 8.7% 23.7% Brokerage &

Investment Banking

555 0.1% 5.6% -5.5%

Healthcare Support

Services

355 31.0% 8.1% 22.9% Banks (Regional) 853 0.0% 5.0% -4.9%

Household Products 531 25.5% 8.2% 17.3% Bank (Money Center) 615 0.0% 4.9% -4.9%

Aerospace/

Defense

229 24.5% 8.9% 15.7% Financial Svcs. (Non-

bank & Insurance)

1030 0.4% 4.3% -3.8%

Computer Services 931 23.2% 8.4% 14.8% Oil/Gas (Integrated) 48 6.3% 9.8% -3.4%

Business &

Consumer Services

834 21.7% 8.0% 13.7% Shipbuilding &

Marine

342 4.4% 7.6% -3.3%

Entertainment 374 22.3% 8.8% 13.5% Steel 735 4.7% 7.7% -3.0%

Beverage (Soft) 101 19.6% 7.4% 12.2% R.E.I.T. 714 2.8% 5.6% -2.9%

Source: Aswath Damodaran, Professor of Finance at Stern School of Business at New

York University, Jan 2018 data 8

9

Stock selection & portfolio construction

• Investible universe of 73 stocks.

• Updated models on entire investible universe.

• Portfolio of 20-30 stocks.

• Subject to OEIC concentration rules.

• Value-based selection process.

• Sector & Sub sector limits.

• Ideal holding period is indefinite.

Sector split

10

Fundsmith sector %

FMCG 31.7

Installed Base – Software 24.6

Medical Equipment 12.5

Payment Processors 9.6

Testing 7.0

Installed Base – Hardware 6.7

Pharmaceuticals 4.0

Franchisors 3.0

Cash 0.9

MSCI sector %

Consumer Staples 31.7

Technology 30.0

Healthcare 24.9

Industrials 5.3

Communication Services 4.1

Consumer Discretionary 3.0

Cash 0.9

Source: Fundsmith as at 30.9.19.

Geographic split

11

By country of listing %

USA 65.7

UK 17.5

Denmark 6.1

Spain 4.0

France 3.2

Finland 2.7

Cash 0.9

By revenue %

North America 46

Europe 24

Asia Pacific 19

Eurasia, Middle East, Africa 6

Latin America 5

Source: Fundsmith as at 30.9.19.

Source: Fundsmith, revenue split is portfolio weighted, based on last

reported fiscal year end as at 15.3.18.

Look-through ratios

12

Fundsmith Equity FundS&P 500

FTSE100

2012 2013 2014 2015 2016 2017 2018 2018 2018

ROCE 29% 31% 29% 26% 27% 28% 29% 16% 17%

Gross Margin 58% 63% 60% 61% 62% 63% 65% 45% 39%

Operating Profit Margin 23% 24% 25% 25% 26% 26% 28% 15% 16%

Cash Conversion 101% 108% 102% 98% 99% 102% 95% 84% 96%

Leverage 44% 40% 28% 29% 38% 37% 47% 46% 39%

Interest Cover 18x 16x 15x 16x 17x 17x 17x 7x 9x

Source: Bloomberg 2019.

ROCE, Gross Margin, Operating Profit Margin and Cash Conversion are the weighted mean of the underlying companies invested in by the Fundsmith Equity Fund and mean for the FTSE 100

and S&P 500 Indices. The FTSE 100 and S&P 500 numbers exclude financial stocks. The Leverage and Interest Cover numbers are both median. All ratios are based on last reported fiscal

year accounts as at 31st December and as defined by Bloomberg. Cash Conversion compares Free Cash Flow per Share with Net Income per Share.

£10,000 invested in the S&P 500 (with dividends reinvested) for

15 years (31-Dec-02 to 31-Dec-17)

Do nothing

13

Being fully invested for

15 years would give

you over twice the

money (or an extra

£23,788) than

someone missing the

10 best days in the

market.

Source: Bloomberg, Fundsmith Research 2018. Data compiled using S&P 500 net total return index in GBP.

Do Nothing

14

2018

Purchases Sales

ColoplastDr Pepper Snapple#

Facebook Nestlé

McCormick

2017

Purchases Sales

Intuit JM Smucker

Imperial Brands

CR Bard*

* CR Bard was bought by Becton Dickinson effective 31.12.17.

2019

Purchases Sales

Brown-Forman

Colgate-Palmolive

3M

# Dr Pepper Snapple was bought by Keurig Green Mountain

Source: Fundsmith 2019

•

Valuation

15

Source: Bloomberg & Fundsmith. Fundsmith Equity Fund is portfolio weighted average excluding cash,

FTSE 100 & S&P 500 are median average. All data as at 6.8.19 in local currency .

• As at 30th June 2019 last reported TTM portfolio free cash flow grew by 12%.

Average HistoricFree Cash Flow Yield

%

Fundsmith Equity Fund 3.6

FTSE 100 Non-Financials 4.9

S&P 500 Non-Financials 4.3

Fund Size: £18.8bn

Fund Inception: 1/11/10

Performance

16

2019

to

30.9

2018 2017 2016 2015 2014 2013 2012

Since

Inception

to 30.9.19

Annualised5

since

inception to

30.9.19

Fundsmith

Equity

Fund1

+25.7 +2.2 +22.0 +28.2 +15.7 +23.3 +25.3 +12.5 +364.8 +18.8

Equities 2 +21.5 -3.0 +11.8 +28.2 +4.9 +11.5 +24.3 +10.7 +177.6 +12.1

Bonds 3 +6.1 +1.2 +1.4 +6.5 +1.0 +10.0 -4.3 +4.1 +44.0 +4.2

Cash 4 +0.6 +0.7 +0.4 +0.5 +0.6 +0.5 +0.5 +0.8 +5.8 +0.6

1 T Class Acc Shares, net of fees, priced at midday UK time. Inception 1.11.10. Source: Fundsmith. As at 30.09.19

2 MSCI World Index (£ Net) priced at close of business US EST. Source: www.msci.com As at 30.09.19

3 Bloomberg/EFFAS Bond Indices UK Govt 5-10yr. Source: Bloomberg As at 30.09.19

4 3m £ LIBOR Interest Rate. Source: Bloomberg As at 30.09.19

5 Annualised performance shows longer term performance rescaled to a 1-year period. Annualised performance is the average return per year over the period.

Actual annual figures are available to the investor on request.

6 The highest and lowest returns for any 1 year over the period since inception

Best Year6: +42% (To September 2018)

Worst Year6: +2.2% (To December 2019)

Organisational chart

Operations

Simon Godwin, Partner

Research & Portfolio

Terry Smith, Partner

Julian Robins, Partner

Accounts & Admin

Eva Oroszi

Finance Manager

George Barry

Financial Controller

VACANT

Reporting Accountant

Caroline Skillett

Office Manager

(Maternity Leave)

Claudia Meszaros

Office & RFP Manager

Georgina Casey

Office Administrator

Product & Risk Management

Tom Armstrong

Head of Product Control

Vickash Bissessur

Product Controller

Chris Li Ying

Head of Operations

Niven Mardaymootoo

Product Controller

Laura Hobart

US Operations Manager

Compliance

Graeme Pollok

Head of Compliance

Maria Moral

Head of Risk & Oversight

Sarah Monime

Legal & Compliance

Manager

Claire Donohoe

AML Analyst

IT

Amar Patel

IT Manager, CISO

Cezanne Rafiuzzaman

IT Support Engineer

Armand Zaire

IT Support Engineer

Sales

Greville Ward

Sales Director, Partner

Conrad Rey

Sales Director, Partner

Hugo Cardale

Sales Director

Joe Sacarello

Sales Director

Peter Jackson

Sales Director

Philipp Habsburg

Sales Director

Luke Zerdes

US Director of Marketing

& Investor Relations

Scott Chivers

Sales Director

Daniel Clarke

Investor Relations

James Rustman

Investor Relations

Fundsmith LLP Management Committee

Terry Smith, CEO & CIO

Mark Laurence, COO

Julian Robins, Head of Research

Simon Godwin, CFO, CCO, MLRO, CF10a

Sales, Marketing & IT

Mark Laurence, Partner

Source: Fundsmith as at 9.30.19

Research

Daniel Washburn

Analyst, Partner

Simon Barnard

Smithson P.M.

Will Morgan

Smithson Asst. P.M.

Jonathan Imlah

Analyst

Michael O’Brien

FEET P.M.

Sandip Patodia

FEET Asst. P.M.

Tom Boles

Analyst, Head of

Sustainability

17

Fundsmith Equity Products

Smithson Investment Trust

Launch: October 2018

Investable Universe: 83

Market Cap Range: £0.5 - 15bn

Portfolio Av. Mkt Cap: £6bn

Fund Size: £1bn

Benchmark: MSCI World SMID

Fund Type: UK listed investment trust

Fundsmith Equity Fund

Launch: November 2010

Investable Universe: 73

Market Cap Range: £3 - 620bn

Portfolio Av. Mkt Cap: £96bn

Fund Size: £18bn

Benchmark: MSCI World

Fund Type: UK OEIC, Luxembourg

SICAV feeder, Mauritian feeder,

Delaware L.P.

Fundsmith Emerging Equities Trust

Launch: June 2014

Investable Universe: 87

Market Cap Range: £0.1 - 62bn

Portfolio Av. Mkt Cap: £3bn

Fund Size: £0.3bn

Benchmark: MSCI Emerging & Frontier

Fund Type: UK listed investment trust

Small & Mid Cap Developed World Large Cap Developed World Emerging & Frontier Market

Fundsmith Sustainable Equity

Launch: November 2017

Investable Universe: 61

Market Cap Range: £3 - 620bn

Portfoio Av. Mkt Cap: £87bn

Fund Size: £0.2bn

Benchmark: MSCI World

Fund Type: UK OEIC, Delaware L.P.

Source: Fundsmith LLP, as at 31.12.18

18